Glencore to Pay $534 Million for Dan Gertler's Stakes in Two Congo Copper Mines -- Source
February 13 2017 - 11:26AM
Dow Jones News
By Scott Patterson
Swiss mining giant Glencore PLC (GLEN.LN) agreed to pay $534
million for the stakes in two African copper project held by its
long-time and controversial business partner, the Israeli
billionaire Dan Gertler, according to a person familiar with the
deal.
Glencore will purchase the 31% holding held in Mutanda Mining by
Mr. Gertler's Fleurette Group, valuing the stake at $922 million,
the person said. Glencore will also purchase Mr. Gertler's 14%
holding in Katanga Mining Ltd., a deal that values the stake at $38
million, the person said.
The deal amounts to $534 million in cash after all debts are
paid.
Both mines are in the Democratic Republic of the Congo, where
Mr. Gertler helped Glencore secure a foothold a decade ago.
Details of deal were first reported by Bloomberg.
Mr. Gertler was at the center of the Justice Department's
criminal case against New York hedge fund Och-Ziff Capital
Management LLC. The Justice Department found that Mr. Gertler paid
more than $100 million in bribes in the Congo--including $10
million to President Joseph Kabila--to facilitate mining deals. Mr.
Gertler, through a spokesman, has denied the allegations.
Write to Scott Patterson at scott.patterson@wsj.com
(END) Dow Jones Newswires
February 13, 2017 11:11 ET (16:11 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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